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Time Value of Money Practice Questions

This document contains practice questions about time value of money calculations. There are 8 questions that involve calculating future and present values of amounts over various time periods and interest rates.

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Gajanand Goudanavar
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22 views2 pages

Time Value of Money Practice Questions

This document contains practice questions about time value of money calculations. There are 8 questions that involve calculating future and present values of amounts over various time periods and interest rates.

Uploaded by

Gajanand Goudanavar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Time Value of Money Practice Questions

Q.1 At an interest rate of 8%, what will be INR10,000 five years from now?

Ans.

FV = INR14,693.28

Q.2 At an interest rate of 8%, What will the today's value of INR10,000 will grow to in five
years?

Ans.

PV = INR6805.83

Q.3 If you wish to accumulate INR140,000 in 13 years, how much must you deposit today in an
account that pays an annual interest rate of 14%?

Ans. INR25,489.71

Q.4 What will INR247,000 grow to be in 9 years if it is invested today in an account with an
annual interest rate of 11%?

Ans. INR631,835.12

Q.5 How many years will it take for INR136,000 to grow to be INR468,000 if it is invested in an
account with an annual interest rate of 8%?
Ans. 16.06 years

Q.6 At what annual interest rate must INR137,000 be invested so that it will grow to be
INR475,000 in 14 years?

Ans. 9.29%

Q.7. If you wish to accumulate INR197,000 in 5 years, how much must you deposit today in an
account that pays a quoted annual interest rate of 13% with semi-annual compounding of
interest?

Ans. INR104,947.03

Q.8. What will INR153,000 grow to be in 13 years if it is invested today in an account with a
quoted annual interest rate of 10% with monthly compounding of interest?
Ans. INR558,386.38

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